CIBC Tech & Innovation Market Update – June 2025

Canadian technology sector performance and valuation

Source: FactSet and Pitchbook as at May 30, 2025; in C$ unless otherwise noted. 
1 Please refer to the end of the document for technology group constituents.

Canadian venture capital market monthly recap

May 2025

Aggregate deal value

$273M
(vs. $396M in Apr-25)²
YTD: $1.57B
(vs. $1.02B YTD-24)³

Number of deals

57
(vs. 50 in Apr-25)
YTD: 304
(vs. 671 YTD-24)

Avg. deal value

$10M
(vs. $17M in Apr-25)²
YTD: $12M
(vs. $5M YTD-24)³

Most active province by value ($ / #)

Ontario
($171M / 33)
YTD: Ontario
($1.04B / 131)

Most active province by count ($ / #)

Ontario
($171M / 33)
YTD: Ontario
($1.04B / 131)

Most active sector

Software
(71% of funds raised)
YTD: Software
(70%)

2 31 deals in May-25 and 27 deals in Apr-25 with no announced values are omitted from deal values.
3 177 deals in YTD-25 and 454 deals in YTD-24 with no announced values are omitted from deal values. 

Noteworthy Canadian deals

Company Size Financing round Sub-sector Lead investors
Moonvalley US$53M Early Stage VC AI creative studio Undisclosed
Amilia C$35M Growth Funding Software - Payments Vertu Capital
Unblocked US$20M Series A Software- Coding B Capital / Radical Ventures

T&I @ CIBC

CIBC Technology & Innovation Conference 13.0

The CIBC Technology & Innovation Conference 13.0 took place on Thursday, May 22, 2025 at CIBC Square in Toronto. The demand environment remained a key theme, with companies striking a cautious tone on IT spending. Despite the uncertainty, there was optimism that AI could help reduce costs in the near term, and that market uncertainty has led to a more attractive M&A environment. Twenty of Canada’s leading public and private technology companies presented over the course of the day with approximately 150 institutional clients and private capital sponsors in attendance.

Read the post-event recap here.*

* Must be a registered member of CIBC Capital Markets Insights. Registration is free and available for all CIBC Capital Markets clients.

Deal activity

Rentsync

Undisclosed
Syndicated Debt Facility
CIBC Innovation Banking acted as Lead Arranger and Admin Agent

Rentsync – Syndicated Debt Facility

CIBC Innovation Banking acted as the lead arranger and administrative agent of credit facilities for Rentsync. The funding provided financing for future capital to support the company’s growth.

ContactMonkey

Undisclosed
Growth Capital Financing
CIBC Innovation Banking acted as Sole Provider

ContactMonkey – Growth Capital Financing

CIBC Innovation Banking provided growth capital financing to ContactMonkey, a portfolio company of Updata Partners.

Circula

Undisclosed
Growth Capital Financing
CIBC Innovation Banking acted as Sole Provider

Circula – Growth Capital Financing

CIBC Innovation Banking provided growth financing to Circula, a leading Berlin-based digital expense management platform, as part of its €15m funding round.

In the news

Innovation Banking: Personal Wealth strategies

Discover how CIBC Innovation Banking and CIBC Private Wealth experts help high-growth company leaders optimize their personal financial strategies. From early planning to navigating pre- and post-liquidity challenges, this fireside chat offers actionable insights on estate planning, diversification, and philanthropy.

Watch the video on CIBC Innovation Banking

Technology & Innovation in‘sites’ with CIBC Equity Research

T&I 'Bits and Bytes'

White collar worries – Industry leaders caution AI will change white collar work

As AI continues to evolve, its impact on the job market, particularly for entry-level white-collar positions, has become a topic of conversation. Industry leaders like Dario Amodei, CEO of Anthropic, warn that AI could potentially eliminate up to 50% of these roles within the next five to ten years, leading to significant increases in unemployment rates. While the prospect of widespread job displacement may spark concern, without entry-level positions businesses may struggle to find skilled workers for higher-level roles down the line. We believe the more likely scenario is one where entry-level positions are redesigned to incorporate AI and allow new hires to engage in higher-level responsibilities. There remains an opportunity for workers to adapt alongside advancing technologies, and we expect AI will become a key component in both education and employee training.

Moving offline – 18% of survey respondents reduced online shopping

Descartes released its annual e-commerce study, which highlighted slowing online purchasing growth after high double-digit growth through the pandemic. With sales in both the US and EU/UK projected to grow in the 6% range annually, retailers are addressing evolving e-commerce preferences as they shift from capturing growth to prioritizing customer retention. Leveraging AI-powered tools, such as route optimization and insights into consumer preferences, can help decrease costs and improve retention.

Q1/25 M&A update – Large deals led activity in Q1

Q1 tech sector deal activity included several megadeals that obscured softer underlying activity. Alphabet’s $32B acquisition of Wiz lifted overall M&A deal value, even as activity declined. Venture funding did grow by 54% Y/Y, although that number was also skewed by an outlier, OpenAI’s historic $40B raise completed at the end of March. AI companies continued to lead funding, although activity slowed in April. Similarly, the IPO market has lost whatever momentum it had following “Liberation Day”, with several issuers postponing their filings. While large transactions boosted Q1 spending totals, we expect overall deal activity is likely to remain subdued until visibility on the macroeconomic environment improves.

Recent technology news

As AI’s energy demands skyrocket, tech giants are eyeing nuclear power as a potential solution—but building new reactors is slow and complex. This deep dive explores why natural gas may dominate the AI boom and how big tech could shape a cleaner energy future.

Read the full article at MIT Technology Review.

Despite losing $2.5 billion in potential revenue due to new export restrictions on its H20 AI chips, Nvidia exceeded Wall Street expectations with a 69% revenue surge. As geopolitical tensions rise, CEO Jensen Huang warns that blocking Chinese tech companies from the US could backfire, while Nvidia’s adaptability and booming AI demand keep it at the forefront of the industry across the globe.

Read the full article at CNN Tech.

Venture capitalist Mary Meeker’s latest report highlights the “unprecedented” speed of AI adoption, with ChatGPT hitting 800 million users in just 17 months and costs for usage dropping 99% in two years. While AI’s rapid evolution benefits consumers, Meeker warns that profitability remains uncertain for many of today’s AI aspirants.

Read the full article at TechCrunch.

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Tech & Innovation Key Contacts

Roman Dubczak
Deputy Chair
Kevin Li
Managing Director and Head, Global Investment Banking

Global Investment Banking

Kathy Butler
Vice Chair and Head of CIBC Capital Markets – B.C.
Colin Ryan
Managing Director, Head of Technology & Innovation, Global Investment Banking
Adam Noily
Managing Director, Head of U.S. Technology & Innovation, Global Investment Banking
Daniel Lee
Managing Director, Technology & Innovation, Global Investment Banking
Emilie Bissonnette
Managing Director, Global Investment Banking
Rob Magwood
Managing Director, Equity Capital Markets

Innovation Banking

Paul McKinlay
Executive Managing Director and Co-Head
Patrick Martin
Executive Managing Director and Co-Head
Amy Olah
Managing Director, Head of Canada & US West Coast Venture Banking, Innovation Banking

Canadian Technology Constituents

High-Growth Canadian SaaS
  • Coveo
  • Dayforce
  • Descartes
  • Docebo
  • Kinaxis
  • Lightspeed
  • Shopify
  • Thinkific
Large Cap Canadian Tech
  • Altus
  • Blackberry
  • Celestica
  • CGI
  • Constellation Software
  • Converge Technologies
  • Dye and Durham
  • Enghouse
  • Evertz Technologies
  • Nuvei
  • OpenText
  • Softchoice
  • Well Health
Mid Cap Canadian Tech
  • Calian
  • Computer Modelling Group
  • D2L
  • Kneat
  • Payfare
  • Real Matters
  • TECSYS
  • Tiny
  • Vecima
Small Cap Canadian Tech
  • Alithya
  • Baylin Tech
  • Blackline Safety
  • Optiva
  • Pivotree
  • Quarterhill
  • Sangoma
  • Sylogist
  • Terago
  • VerticalScope
  • Vitalhub
  • Voxtur

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